TCS shares slip nearly 2% after company announces over 12,000 job cuts
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Shares of Tata Consultancy Services (TCS), India's largest IT exporter, slipped 1.7% to an intraday low of Rs 3,081.20 on BSE on Monday, after the company announced plans to lay off around 2% of its global workforce — roughly over 12,000 employees — over the year.The move comes amid growing macroeconomic uncertainty and increasing AI-led disruptions impacting technology demand.As of the end of June 2025, TCS employed 613,069 people globally. In a statement, the company said the layoffs would primarily impact middle and senior grades and are part of TCS's larger journey to become a 'future-ready organisation.'The company added that the deployment of some associates may no longer be feasible under current market conditions.The company emphasized that the transition is being managed carefully to ensure continuity in client service. Affected employees will receive their full notice period compensation along with additional severance benefits. TCS also plans to provide insurance extensions, outplacement support, counseling, and transition assistance.The decision follows closely on the heels of legal complaints filed by several employees against TCS's recently modified 'bench policy.' The updated policy reportedly allows just 35 annual days for employees to remain unassigned before being subject to performance-related action, and it requires a minimum of 225 billable days annually.The broader IT industry has also shown signs of a slowdown. According to a previous report by ET, job additions across the top six Indian IT majors fell sharply by over 72% in the April–June quarter, with only 3,847 new hires compared to 13,935 in the preceding quarter.Despite the layoffs, TCS reaffirmed its commitment to long-term strategic initiatives, including investments in new-age technologies, entry into new markets, deployment of AI at scale, deeper partnerships, and the development of next-generation infrastructure.On Friday, TCS shares closed flat at Rs 3,134.35 on the BSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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